Prudential expands in Indonesia through Syariah life insurance deal

Insurance and investment group Prudential said on Friday it has expanded further into South East Asia through a strategic partnership with Bank Syariah Indonesia.

Through PT Prudential Sharia Life Assurance, Prudential will from early 2025 become the Syariah life insurance provider of Bank Syariah Indonesia, the country's sixth largest bank and the largest Syariah bank by assets.

BSI has more than 20m customers and 1,000 bank branches across the country.

Prudential said Indonesia represents a "significant market" for Syariah financial services, with 84% of the 280m population identifying with the Islamic faith, and diversifies its operations in the country, where it has historically been dependent on the agency channel.

"We are excited to leverage our bancassurance expertise in the Indonesian market. We will deploy our operating experience and product capabilities for our new banking relationship with BSI, further advancing our extensive transformation of our Indonesian business," said chief executive Anil Wadhwawni.

"Our focus is on creating a platform of long-term sustainable value for our customers, our partners and our shareholders. This in-country transaction aligns with our strategic and financial objectives."